When Government Saving Is Negative

question 53

Multiple Choice

When government saving is negative,

• A)the real interest rate rises.
• B)the real interest rate falls.
• C)investment increases.
• D)the real interest rate falls if crowding-out occurs.
• E)the supply of loanable funds increases.

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Definitions:

Pressure Flow Theory

Explanation of how a difference in turgor between sieve elements in source and sink regions pushes sugar-rich fluid through a sieve tube.

Source Region

Geographic areas where air masses form, acquiring specific temperature and humidity characteristics.

Phloem Transport

The movement of sugars and other metabolic products downwards from the leaves through the phloem.

Root

The part of a plant that typically lies below the surface of the soil, anchoring the plant and absorbing water and nutrients from the soil.